XStocks Launches on Ethereum with 60 Tokenized Stocks
XStocks, a tokenized stock offering owned by Backed Finance, is set to launch on Ethereum with approximately 60 tokenized stocks, featuring companies like NVIDIA, Amazon, Tesla, Meta, and Walmart, as announced on Tuesday.
Prior to its introduction on Ethereum, xStocks had already been launched on Solana, BNB Chain, and Tron. The platform is backed by Backed Finance, a company specializing in real-world asset (RWA) tokenization that has partnered with crypto exchanges such as Kraken and Bybit to promote its offerings.
“Ethereum is one of the world’s most widely adopted smart contract networks — and xStocks were built to meet users where they already are,” a representative from Kraken said.
Ethereum currently leads in decentralized finance (DeFi) among all blockchains, having reached a total value locked of $90.8 billion on Monday, which accounts for 60% of the overall TVL across all blockchains.
In June 2025, Gemini launched tokenized stock trading within the Ethereum ecosystem, and reports indicate that eToro is considering launching tokenized stocks on Ethereum as well.
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Understanding Real-World Asset Tokenization
Real-world asset tokenization involves creating a digital representation of traditional financial or physical assets, like stocks or commodities, on a blockchain. In some instances, these underlying assets may be illiquid, such as real estate.
Advocates for tokenized stocks argue that the technology makes equity investing more accessible by eliminating unnecessary barriers and regulatory silos.
Nonetheless, tokenized equities are still navigating a legal gray area. Legal experts suggest that tokenized stocks might not provide investors with the same legal protections as owning the stock itself. Furthermore, there is no direct claim on company assets or accompanying voting rights.
Regulatory Challenges and Market Trends
Stock exchanges and global regulators are expressing concern about the tokenization trend, advocating for increased oversight from the US Securities and Exchange Commission (SEC) and other regulatory bodies, especially concerning tokenized stocks.
Despite these challenges, fintech and crypto companies are actively expanding their offerings in tokenized equities. On June 30, Robinhood launched a blockchain designed to support tokenized stock trading in Europe.
According to analytics platform RWA.xyz, the market capitalization for tokenized stocks currently stands at $342 million, representing a mere 1.2% of the overall $27.9 billion market cap for tokenized RWAs.
